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"For the hotel sector, there is pressure because you have a commitment to fulfill something by a certain date," said Thomas Grundner, VP Global Sales, Jumeirah Group. "Normally you would have the luxury of having a bit more time to grow, but the FIFA puts extreme pressure on delivery and making it happen."
On the positive side, there was general agreement that hotels will begin to see a lift in demand as early as next year. "The country is planning massive spending, over $100bn, in infrastructure works, which is going to bring a lot of consultants, architects, developers, you name it, and all these people will need accommodation. So the demand for hotel rooms will start in early 2012," said Bani Haddad, Vice President Development, MEA, Wyndham Hotel Group.
Concerns about oversupply after the games
Commenting on fears of a post-2022 glut in the hotel market, Haddad noted that although the country has pledged to offer 90,000 rooms for visitors to the games, it doesn't mean that all of the accommodation will be from hotel rooms.
"When we say 90,000 rooms, you have to look at the breakdown. The additional hotel rooms will be between 20,000-25,000, with the rest of the rooms coming from existing hotels, compounds, villas, and other residential accommodation. So I don't think we have to be scared of this number," he said.
Still, Haddad warned that Qatar needs to take steps to avoid the mistakes that were made by previous host countries. "One lesson we learned from the South African World Cup experience is that prices were so high for rooms that people traded down and chose to spend their money at budget hotels. So at the end of the day we have to keep in that we need the masses for this kind of event, so I am sure we will see a significant amount of budget brands being developed," he said.
Attracting people prior to the games will be relatively easy, but getting them to come back following the event will be a challenge, as the country currently only attracts about a million visitors a year, the vast majority of which are business travellers.
"The government is aware of this challenge, and they know they need to develop the leisure market to keep people coming back after the cup, but I don't think anyone has a clear vision yet," he pointed out. "I think it will take time. It won't happen overnight."
Games will put Qatar on tourist map
Other speakers touted the enormous opportunity that Qatar will have to boost its status as a tourist destination. "There is so much focus on this 30-day event, but sometimes that misses the point," said Darrell Sheaffer, General Manager, Hotels & Resorts, Hospitality Development Company. "I think you will see a real transformation in the country due to the massive amount of infrastructure taking place. I don't believe if you build it, they will come. But I do believe if you don't build it, they will not come."
Sheaffer said the country is focusing on culture, sport, and education as part of a long-term strategy to boost tourism. Other demand drivers include the soon to be open Qatar National Convention Centre and the Doha International Exhibition Centre.
Jeff Florian, Senior Reporter
